Visa explores on-chain lending as part of DeFi expansion
Visa has taken another major step into blockchain technology, unveiling a detailed report that signals its intention to enter decentralized finance (DeFi) through the development of on-chain lending infrastructure. The payments giant is focusing on stablecoin-based lending and programmable credit markets, aiming to bridge the gap between traditional banking and DeFi protocols. The move aligns with Visa’s broader strategy to power the next generation of digital finance by enabling regulated institutions to securely participate in blockchain ecosystems.
The company’s latest report outlines how it plans to build the technological and regulatory foundation for institutional on-chain lending. Rather than issuing tokens or taking direct lending risk, Visa intends to create the APIs, compliance systems, and data tools necessary for banks, fintechs, and asset managers to connect to decentralized protocols securely. According to Visa, smart contracts and blockchain-based collateralization could provide new efficiencies for global liquidity and credit markets.
Visa reframes DeFi as “on-chain finance”
A key theme in Visa’s messaging is its deliberate shift from the term “DeFi” to “on-chain finance.” The language reflects the company’s effort to present decentralized technology in a framework that appeals to regulators and institutional partners. Visa describes on-chain finance as a regulated, transparent, and programmable version of DeFi, powered by stablecoins and public blockchain networks.
In its report, Visa highlights the potential of programmable money and smart contracts to automate credit flows, manage risk, and support transparent lending operations. It also details risk management models such as programmatic liquidations and overcollateralization, which are standard features of decentralized lending protocols like Aave and Compound. These models, Visa suggests, could be adapted for use in regulated financial environments.
Building on previous blockchain pilots
This announcement follows Visa’s earlier experiments with blockchain-based payment answers. In 2024, the company ran a pilot program using stablecoins to pre-fund cross-border settlement accounts, demonstrating how programmable assets could simplify treasury operations. The success of that initiative appears to have paved the way for Visa’s current focus on on-chain credit infrastructure.
Visa’s ongoing exploration into DeFi also reflects a broader industry shift toward institutional-grade blockchain adoption. With stablecoin market capitalization surpassing $300 billion and lending protocols managing billions in on-chain assets, traditional finance players are increasingly viewing decentralized systems as viable liquidity sources. Visa’s entry could accelerate institutional participation by lowering technical and compliance barriers.
By positioning itself as the infrastructure provider rather than a market participant, Visa aims to serve as the bridge between traditional finance (TradFi) and decentralized finance (DeFi). The company envisions a financial ecosystem where banks and asset managers can access blockchain liquidity through compliant and secure interfaces. This hybrid model could redefine how capital markets access credit, collateral, and yield opportunities.
Although Visa’s report does not announce a specific launch date, it confirms that the company is actively engaging with regulated partners to explore pilot programs. If successful, Visa’s on-chain lending framework could mark a pivotal moment for the integration of blockchain into mainstream financial infrastructure—solidifying its role as a leader in the future of digital finance.
